Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2024)

Top mortgage reit stocks in 2024 ranked by overall Zen Score. See the best mortgage reit stocks to buy now, according to analyst forecasts for the reit - mortgage industry.

According to Zen Score, the 3 best mortgage reit stocks to buy right now are:

Lument Finance Trust (NYSE:LFT) is the top mortgage reit stock with a Zen Score of 50, which is 27 points higher than the mortgage reit industry average of 23. It passed 19 out of 38 due diligence checks and has strong fundamentals. Lument Finance Trust has seen its stock return 30.22% over the past year, overperforming other mortgage reit stocks by 31 percentage points.

Ready Capital (NYSE:RC) is the second best mortgage reit stock with a Zen Score of 46, which is 23 points higher than the mortgage reit industry average of 23. It passed 17 out of 38 due diligence checks and has strong fundamentals. Ready Capital has seen its stock lose -14.33% over the past year, underperforming other mortgage reit stocks by -14 percentage points.

Ready Capital has an average 1 year price target of $38.10, an upside of 330.51% from Ready Capital's current stock price of $8.85.

Ready Capital stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Ready Capital, 60% have issued a Strong Buy rating, 0% have issued a Buy, 20% have issued a hold, while 20% have issued a Sell rating, and 0% have issued a Strong Sell.

Arbor Realty Trust (NYSE:ABR) is the third best mortgage reit stock with a Zen Score of 39, which is 16 points higher than the mortgage reit industry average of 23. It passed 15 out of 38 due diligence checks and has average fundamentals. Arbor Realty Trust has seen its stock return 22.33% over the past year, overperforming other mortgage reit stocks by 23 percentage points.

Arbor Realty Trust has an average 1 year price target of $13.81, an upside of 7.75% from Arbor Realty Trust's current stock price of $12.82.

Arbor Realty Trust stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Arbor Realty Trust, 0% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

Out of 31 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Armour Residential Reit (NYSE:ARR) has an annual dividend yield of 22.46%, which is 9 percentage points higher than the mortgage reit industry average of 13.54%. Armour Residential Reit's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Armour Residential Reit's dividend has not shown consistent growth over the last 10 years.

Armour Residential Reit's dividend payout ratio of -1,733.3% indicates that its high dividend yield might not be sustainable for the long-term.

Nexpoint Real Estate Finance (NYSE:NREF) has an annual dividend yield of 19.27%, which is 6 percentage points higher than the mortgage reit industry average of 13.54%. Nexpoint Real Estate Finance's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Nexpoint Real Estate Finance's dividend has shown consistent growth over the last 10 years.

Nexpoint Real Estate Finance's dividend payout ratio of 425.8% indicates that its high dividend yield might not be sustainable for the long-term.

Invesco Mortgage Capital (NYSE:IVR) has an annual dividend yield of 18.69%, which is 5 percentage points higher than the mortgage reit industry average of 13.54%. Invesco Mortgage Capital's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Invesco Mortgage Capital's dividend has not shown consistent growth over the last 10 years.

Invesco Mortgage Capital's dividend payout ratio of -188.2% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were up 1.34% in the last day, and up 1.17% over the last week.

We couldn't find a catalyst for why mortgage reit stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued mortgage reit stocks right now are:

Lument Finance Trust (NYSE:LFT) is the most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Lument Finance Trust has a valuation score of 71, which is 43 points higher than the mortgage reit industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Lument Finance Trust's stock has gained 30.22% in the past year. It has overperformed other stocks in the mortgage reit industry by 31 percentage points.

Ready Capital (NYSE:RC) is the second most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Ready Capital has a valuation score of 57, which is 29 points higher than the mortgage reit industry average of 28. It passed 4 out of 7 valuation due diligence checks.

Ready Capital's stock has dropped -14.33% in the past year. It has underperformed other stocks in the mortgage reit industry by -14 percentage points.

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) is the third most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Chicago Atlantic Real Estate Finance has a valuation score of 57, which is 29 points higher than the mortgage reit industry average of 28. It passed 4 out of 7 valuation due diligence checks.

Chicago Atlantic Real Estate Finance's stock has gained 11.79% in the past year. It has overperformed other stocks in the mortgage reit industry by 12 percentage points.